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Spain

Spain is a parliamentary monarchy with the King as Head of State. The current Constitution was enacted in 1978, following the death of General Franco and the return of democracy.

Spain is made up of 17 autonomous communities and two North African enclaves, each with its own government with independent legislative and financial powers.

New developments
  • Residents and non residents: The Spanish government has implemented its promise to suspend wealth tax retroactively to 1 January 2008.
  • Resident retirees: Unearned income, including dividends interest and capital gains are now taxed at a flat rate of only 18 per cent.
  • Special regime for executives: For the first five years, non residents moving to Spain to take up paid employment can elect to pay tax on income arising in Spain at a flat rate of only 24 per cent with an exemption of 100 per cent for income and gains arising outside Spain.

1. Introduction

Spain is a parliamentary monarchy with the King as Head of State. The current Constitution was enacted in 1978, following the death of General Franco and the return of democracy.

Spain is made up of 17 autonomous communities and two North African enclaves, each with its own government with independent legislative and financial powers.

The currency is the euro (EUR).

Editorial board
Michael Soul TEP
Michael Soul & Asociados Abogados, Marbella, Spain

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